Sears Company Closing Three Stores in Eastern Massachusetts
By NBP Staff | January 5, 2017, 15:13 EST
The company that owns Sears and Kmart is closing three stores in Massachusetts at the end of March.
The Sears in Swansea is closing, along with Kmart stores in Fairhaven and South Attleboro.
The Sears Auto Center in Swansea is also closing.
The company is closing 150 money-losing stores nationwide. Collectively the stores generated $1.2 billion in sales during the past 12 months but they lost $60 million net, the company said.
The company is planning to focus on online sales.
Sears Holdings Corporation, of Hoffman Estates, Illinois, made the announcements Thursday, January 5.
Elsewhere in New England, Sears stores will also be closing at the end of March in Woonsocket, Rhode Island; Enfield, Connecticut; and Augusta, Maine. The Sears Auto Center stores in Woonsocket and Augusta are also closing.
Kmart stores are closing in Cromwell, Connecticut, and in Bangor, Maine.
In addition, the company is selling its Crafstman business for $775 million. But Sears will be able to continue selling Craftsman products without royalties for 15 years and will continue to collect royalties on third-party sales, the company said.
Sears is also taking $1 billion in loans, including $500 million in loans backed by company-owned real estate and $500 million issued by Citibank.
“We are taking strong, decisive actions today to stabilize the company and improve our financial flexibility in what remains a challenging retail environment,” said Edward S. Lampert, chairman and chief executive officer of Sears Holdings, in a press release. “We are committed to improving short-term operating performance in order to achieve our long-term transformation.”
The Sears announcement comes one day after Macy’s announced it is closing 68 stores nationwide, including stores in Brockton and Taunton.
Traditional department stores are having trouble competing with online sales.